Aceable Agent Principles of Real Estate 2 Questions With 100%Verified Solutions(GUARANTEED Success)
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Aceable Agent: Real Estate Principles
Institution
Aceable Agent: Real Estate Principles
Aceable Agent Principles of Real Estate 2 Questions With 100%Verified Solutions(GUARANTEED Success)
Amortization - correct answer...The repayment of a loan principle over time
Arrears - correct answer...Payment for an item or service after it's received
Down Payment - correct answer...The ...
Aceable Agent Principles of Real Estate
2 Questions With 100%Verified
Solutions(GUARANTEED Success)
Amortization - correct answer...✔✔The repayment of a loan principle over time
Arrears - correct answer...✔✔Payment for an item or service after it's received
Down Payment - correct answer...✔✔The initial payment made when buying
something on credit, a ____________ is paid directly by the buyer to the seller
Proration - correct answer...✔✔The allocation or distribution of an annual expense
across smaller chunks of time
Acreage - correct answer...✔✔A unit of measurement used to determine the size of
land; 1 acre = 43560 square feet
Appraisal - correct answer...✔✔The value of property, based on factors determined by
a certified appraiser
General data - correct answer...✔✔Information about the area surrounding a property,
this could include the city, region, and neighborhood in which the property is situated
Specific Data - correct answer...✔✔Information regarding the property itself
Limited Appraisal - correct answer...✔✔A simple, abbreviated version of a regular
appraisal
Market Value - correct answer...✔✔The price for which a property would sell if offered
openly under normal conditions. This refers to the economic principle, it's the price that
a buyer and seller would probably accept
Appraised Value - correct answer...✔✔Refers to the value given by a licensed
appraiser during the mortgage origination process. Appraisers are chosen by the lender
but paid for by the homebuyer.
Assessed Value - correct answer...✔✔Refers to the value placed on a property by a
governmental unit for use in levying annual real estate taxes
Loan-to-Value Ratio (LTV) - correct answer...✔✔The limit on the value of a loan,
usually a certain percentage of the home's appraised value or sales price, whichever is
lower
AGRADESOLUTIONS
,Subject Property - correct answer...✔✔The property that is being evaluated in any
given appraisal
Highest and Best Use - correct answer...✔✔What is achieved when a property is used
for the most appropriate purpose with the highest returns
Principle of Anticipation - correct answer...✔✔The present value of a property is
affected by the anticipated income or utility that property will give to the property owner
Principle of Contribution - correct answer...✔✔A property's overall value is made of the
combined value of each of its parts
Principle of Substitution - correct answer...✔✔The value of something is effected by the
cost of getting a similar (substitute) item elsewhere
Principle of Change - correct answer...✔✔The condition of a property, the desirability of
its location, and the market in which it exists can always change
Principle of Conformity - correct answer...✔✔Values are the highest when houses in a
neighborhood look roughly the same
Principle of Regression - correct answer...✔✔Lower value properties surrounding a
subject property are can drag down the value of a property
Principle of Progression - correct answer...✔✔Higher value properties of a subject
property can bump of the value of a property
Sales Comparison Approach - correct answer...✔✔Determining value by comparing
the subject property to similar properties ("comps") that have sold recently. It's most
commonly used for single family residences.
Cost Approach - correct answer...✔✔Determining value by considering how much the
same property would cost to build brand new at current prices (replacement cost), then
adjusting for depreciation
Income Approach - correct answer...✔✔Determining value by considering how much
income the property would generate when used as rental property
Depreciation - correct answer...✔✔The loss of value because of obsolescence or
deterioration
Functional Obsolescence - correct answer...✔✔Loss of value because a property's
function or appearance has gone out of style or has been replaced by a more appealing
version
AGRADESOLUTIONS
, External Obsolescence - correct answer...✔✔Loss of value caused by negative forces
outside the property which are beyond the control of the owner (unfavorable changes in
the environment or market)
Deterioration - correct answer...✔✔Loss of value caused by physical wear and tear
over time
Chronological age - correct answer...✔✔The literal age of a property; a home built 30
years ago has a ________________ age of 30
Effective Age - correct answer...✔✔An estimated age that is influenced by the updates
and quality of maintenance of the property; a 30 year house that has been well cared for
might have an effective age of 15
Reconciliation - correct answer...✔✔When an appraiser compares estimates using
different techniques (cost approach, sales approach, and/or income approach) and
comes to a single number for value
Appraisal Report - correct answer...✔✔a report from a licensed appraiser that sums up
a property's market value based on collected data
Appraisal Review - correct answer...✔✔a review of the appraisal report to make sure
the appraisal meets the lender's standards
Desk Review - correct answer...✔✔When a lender carries an appraisal review at the
desk (as opposed to sending someone to the field) to make sure the original appraisal is
accurate
Field Review - correct answer...✔✔When a third party appraiser is sent back out to the
property to check the validity of the first appraisal
Fair Market Value - correct answer...✔✔The price for which a property will sell if
offered openly under normal market conditions
Subject Property - correct answer...✔✔The property that is subject of the CMA
Comparative Market Analysis - correct answer...✔✔Also known as a CMA, this is a
report generated by a license holder that compares prices of recently sold homes
(comparables) in order to estimate the fair market value of a similar property (the
"subject property")
Government Sponsored Enterprises - correct answer...✔✔Publicly traded institutions
that were created by Congress to provide liquidity, stability, and affordability to the
mortgage market
AGRADESOLUTIONS
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